The BlackRock chief has sent out his annual missive excoriating activism. Of course, Larry’s far too smooth to actually use the word, and so instead decries “the effects of the short-termist phenomenon.” But Andrew Ross Sorkin gets to the heart of the matter in his chat with Fink.
Mr. Fink said he met with two activists last week. One of them, he said, told him, “You hate me, don’t you?”
“No, I don’t hate you,” Mr. Fink said he replied. “I’m just trying to get some balance.”
He doesn’t hate the sinner, you see. He hates the sin. But we’re pretty sure some of those sinners are going to hate the hell out of Larry after reading his solution to the problem, as he sees it.
“We believe that U.S. tax policy, as it stands, incentivizes short-term behavior,” he writes in his letter. “Since when was one year considered a long-term investment? A more effective structure would be to grant long-term treatment only after three years, and then to decrease the tax rate for each year of ownership beyond that, potentially dropping to zero after 10 years.”